Growth in Chinese exports is expected to be most rapid to other economies in Asia (excluding Japan) over the medium term. Chinese exporters will begin to target new markets for their products in other emerging economies. Export prospects amongst the developed economies appear far more restrained, with the share of exports to Europe expected to decline. The US economy continues to represent the most important market for Chinese exporters in terms of its absolute size. In terms of imports, rest of Asia (excluding Japan) remains the largest with a quarter of total Chinese imports.
Opportunities for UK businesses
The Chinese Government’s 12th Five-Year Plan, adopted in March 2011, vows to continue reforming the economy. The government has recently focused on financial sector reform as well as the extension of land rights to rural areas to allow the use of land as collateral will be important to the development of China’s consumer market. The modest economic growth will help economic restructuring as Chinese firms are increasingly under pressure to move up the value chain, creating demand for imported manufactured goods in the long term. China will remain an important and viable market for a wide range of products and services. As a result China offers huge opportunities for British companies, particularly in sectors such as food and drink, renewable energy and financial services.
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